Independent P&C
Insurance Agents are
Ramping Up Tech Budgets
Major Increase in Business Optimism; Insurance Agencies
Look to Technology and Carriers to Increase Growth.
PLEASANTON, Calif. — The fu-
ture of independent property and ca-
sualty insurance agencies looks bright,
according to a recent survey of agency
principals and producers conducted by
Hanover Research. The study, “How
Independent P&C Insurance Agencies
Thrive in 2016’s Competitive Market-
place,” reports that nearly half (49 per-
cent) of agency respondents were “very
optimistic” about the future success of
their agencies. Agents are increasing-
ly turning to technology to find new
ways to engage with customers and
increase their competitive edge. Two-
thirds of surveyed agencies either use
or plan to invest in mobile-enabled
websites to help attract new custom-
ers, up from 40 percent in 2015. Al-
most half (47 percent) of agencies say
they are experimenting with new mar-
keting tactics, and 36 percent say that
they, like the carriers, are increasing
customer self-service capabilities. A
substantial number (31 percent) have
noticed an increase in customer inqui-
ries for usage-based products such as
pay-as-you-drive car insurance. While
this is a relatively low-margin product,
agents — particularly those working
with CRM programs — regard these
inquiries as an opportunity to grow
their customer base.
The study shows a steady year-over-
year increase in technology budgets
and the adoption of business software
applications, such as mobile interfac-
es and customer relationship manage-
ment (CRM) — both of which are
credited with helping the independent
agent channel remain competitive.
Michael Macauley, CEO of Quadrant Information Services, a supplier
of pricing analytics services to property and casualty insurance carriers, said,
“Like practically every other industry,
insurance at the agency level has been
disrupted to some extent by digital
technology.”
Highly interactive websites make
it easier and more cost-effective for
carriers to deal directly with individual policyholders. Younger and more
technology-savvy insurance customers, and especially Millennials, prefer this approach for certain products
— particularly auto insurance, which
is now essentially a cost-differentiated
commodity.
Agencies are reevaluating their relationships with the carriers whose
products they handle. Factors such as
compensation plans and marketing
support for carriers, which in the past
have been quite important to agencies,
are no longer as relevant as they once
were. Industry observers warn that carriers who continue to do business as
usual will find that agencies have moved
on to those carriers that “get it” and are
willing to meet the agencies’ evolving
needs. Overall, the findings of “How
Independent P&C Insurance Agencies
Thrive in 2016’s Competitive Marketplace” indicate a strong understanding
of the importance of technology to help
drive revenue growth, and an equally
strong desire for technological support
from the carriers with whom they work.
While agencies are determined to deliver better service, they are aware that the
level of service they can provide is highly dependent upon the carriers.
“They want information,” said Macauley, “and they want it quickly. Response time is hugely important to the
agencies. They also want the information delivered in a form that enables
them to use it to make good business
decisions.”
Macauley stated that Quadrant is
working to help carriers provide such
information through the development
of Periscope, a business intelligence
tool that provides a written, qualitative,
plain-English summary of complex
data comparisons. Macauley explained
that Periscope is designed to help a car-
SLSOT Updates Surplus
Lines Eligible Insurer List
AUSTIN — The Surplus Lines Stamping Office of Texas (SLSOT) reports
the following changes to the insurer list.
Eligible Insurers
Alien insurers effective 10/1/2016 include the following:
• The Hanover Atlantic Insurance Company, LTD.
• Helvetia Swiss Insurance Company in Liechtenstein LTD.
• Lloyd’s of London Syndicate #1856
• Lloyd’s of London Syndicate #2357
Foreign Insurers effective 10/27/2016:
• Golden Bear Insurance Company
Ineligible Insurers
• Renaissancere Specialty Risks LTD became ineligible as of 10/1/2016.
Name Changes effective 10/1/2016
• Ironshore Europe LTD changed to Ironshore Europe DAC
• PartnerRe Ireland Insurance Limited changed to PartnerRe Ireland Insur-
ance DAC
A current list of Surplus Lines eligible insurers can be found at the SLSOT
website, www.slsot.org/Company/Insurerslist.html.
